What you need to know about the governments COVID19 Phase 2 plans.

What you need to know about the governments COVID19 Phase 2 plans.

 

As you may have seen, Chancellor, Rishi Sunak has outlined his plans on the government will revive the economy following the COVID19 pandemic.

 

The government is moving into Phase 2 of its three-step plan. The announcement stated a £30bn package to help revive the UK economy and help reduce mass unemployment.

 

  • Phase 1 – Continue to slow the spread of the virus and provide immediate support to business and individuals.
  • Phase 2 – The implementation of the government’s ‘Plan for Jobs’.
  • Phase 3 – This is to be set out in the Autumn Budget announcement.

 

Below we have prepared a list of all the key announcements for Phase 2 updates:

 

 

Job Retention Scheme (JRS)

 

  • The Chancellor confirmed that the JRS will end in October, saying: “It is a false hope to keep furloughing open forever”.

 

New Job Retention Bonus

  • A new one-off bonus of £1,000 will be paid to employers for bringing back and retaining furloughed employees until January 2021.
  • The £1,000 is for each furloughed employee who is retained until 31 January 2021.
  • Employees must be paid at least £520 per month between the end of the JRS and 31 January 2021.

 

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Kickstart scheme

 

  • The Kickstart scheme will help fund the direct creation of high-quality jobs for young people at the highest risk of long-term unemployment.
  • The scheme will pay employers who take 16 to 24-year-olds for a minimum of 25 hours per week at the National Minimum Wage (NMW).
  • The grant will pay the wages, employer NIC and employer pension for the first six months.
  • No cap on the number of places available.

 

Training places

 

  • Pay employers £1,000 to take on new trainees aged 16 to 24.
  • Apprentices: will introduce a new payment of £2,000 to employers in England for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1st August 2020 to 31st January 2021.

 

Green measures

 

  • £2 billion in green home grants.
  • A green homes voucher scheme to make private homes more energy-efficient.
    • Providing at least £2 for every £1 to homeowners and landlords spend to make their homes more energy-efficient, up to £5,000 per household.
    • For those on the lowest incomes, the scheme will fully fund energy efficiency measures of up to £10,000 per household.
  • £1 billion to improve the energy efficiency of public buildings.
  • £50 million on measures to de-carbonise social housing. Stamp Duty Land Tax (SDLT)
  • The current residential SDLT threshold of £125,000 will rise to £500,000.
  • This will apply from 8 July 2020 until 31 March 2021.
  • Applies only to property purchased in England and Northern Ireland.

 

Tourism & Hospitality Sector

 

Temporary 6 month VAT cut on food and non-alcoholic drinks

  • VAT rate cut to 5% from 15 July 2020 to 12 January 2021 to support businesses and jobs in the hospitality sector.
  • The reduced (5%) rate of VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK.
  • We’re expecting further guidance on the scope of this relief to be published by HMRC in the coming days.

Temporary 6 month VAT cut on accommodation and attractions

  • VAT rate cut to 5% from 15 July 2020 to 12 January 2021 to support businesses and jobs.
  • The reduced (5%) rate of VAT will apply to supplies of accommodation and admission to attractions across the UK.
  • We’re expecting further guidance on the scope of this relief to be published by HMRC in the coming days.

Eat Out to Help Out

  • The ‘Eat Out to Help Out’ scheme aims to encourage people to return to eating out.
  • Every diner will be entitled to a 50% discount of up to £10 per head on their meal, at any participating restaurant, café, pub or other eligible food service establishments.
  • The discount can be used unlimited times and will be valid Monday to Wednesday on any eat-in meal (including non-alcoholic drinks) for the entire month of August 2020 across the UK.
  • Reclaimed by the business which must apply to participate.

 

If you would like any further information on these updates or how you can ensure your workplace is safe to work in, please contact us using our socials below.

 

E: contact@highperformanceconsultancy.com

T: 0844 800 5932

Twitter: @HPC_HRservices

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